Texas Homestead Exemption Expained
What is the Homestead Exemption in Texas & what are the benefits? The homestead exemption is something every Texas homeowner should have on their primary residence. In this video, I explain the benefits. If you'd prefer to read the video transcript, it can be found below.
Greetings. If you purchased a home in Texas in 2021, it’s time to file your homestead exemption. The homestead exemption is for your primary residence, not a second home or investment property. It’s got two key benefits. First, some taxing entities will lower your taxable value. For example, under state law, school districts give a $25,000 reduction in value. Meaning that if your house is appraised by the central appraisal district at $500,000, your school district taxes you on a value of $475,000. Not all taxing entities give you a break, but some do. The other main advantage is the 10% cap. Once you have a homestead exemption in place, your year-over-year increase in taxable value will not increase more than 10%. So if you have a $500,000 value in 2022, your maximum value in 2023 will be $550,000. That’s important right now as values are climbing quickly. To file your exemption, get on your appraisal district website and follow the directions. I've provided the links to the webpages if you live in Travis or Williamson county.